Samsung Electronics is facing a capacity crunch as surging demand for artificial intelligence chips strains its foundry and mobile operations, according to The Korea Herald.
The South Korean tech giant is preparing to report a second-quarter operating profit that has jumped approximately 18-fold year-over-year, reaching a new record high.
This dramatic turnaround is fueled by intensifying demand for memory chips used in AI applications, which has pushed the company’s production lines to their limits.
The market is reacting to the dual narrative of record profitability and operational constraint.
While the 1,800% year-over-year increase in operating profit signals a robust recovery for the semiconductor sector, the reported strain on internal units suggests that supply-side bottlenecks may cap near-term growth potential.
Investors are weighing the immediate revenue upside against the risk that Samsung cannot fully capitalize on the AI boom without significant capital expenditure to expand capacity.